Why we’re borrowing to finance budget despite meeting revenue target

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Belgique Dernières Nouvelles,Belgique Actualités

“When you talk about the issue of meeting the target of revenue and borrowing, if you look at the budget you gave us last year, a portion of that budget is borrowing. That is part of the fact that you achieved the revenue that you put in the budget. Don't forget also that you put in there that we should go and borrow.

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Mr Adedeji said borrowing to finance the budget is necessary to enable the government to complete and execute capital projects proposed in the budget.Support journalism driven by facts, created by Nigerians for Nigerians. Our thorough, researched reporting relies on the support of readers like you.He said though the FIRS agency had surpassed its revenue target for 2024 which could be used to finance the budget but the government needed to borrow more.

“Most of the borrowing that you have approved for us are foreign loans which have to do with our international fiscal balances. “Already, by the first half of this year, the budget deficit, the amount of borrowing compared to the wealth of the country, was already down to 4.4 per cent. Under the MTEF, it is expected to go next year to about 3.8 per cent, headed towards the limit of 3 per cent as allowed under the Fiscal Responsibility Act,’ he added.

 

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Belgique Dernières Nouvelles, Belgique Actualités